Contracts
A North Dakota real estate purchase agreement that uses the phrase 'subject to seller's approval of buyer's credit' makes the agreement:
AUnconditionally binding on both parties
BIllusory or potentially unenforceable since the seller's obligation depends entirely on their own discretion✓ Correct
CA valid conditional contract
DA standard financing contingency
Explanation
An illusory contract occurs when one party's obligation depends entirely on their own discretion with no objective standard. 'Subject to seller's approval' with no criteria makes the seller's performance totally discretionary, which may render the contract unenforceable.
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